Sunday, 25 October 2015

Trusting Your System and Objectivity

It is very important to trust and continue to take objective actions as you processthe trading signals generated by your system.

We have to learn to accept and take action based on the information given to us by the market
through the medium of our trading system. We have to accept and understand what the chart tells us
rather than focus more on our "feeling" about it.

Don't trade with your feelings or what you think about the markets. Our thoughts often take us
into the future trying to predict or they take us to the left of the chart pondering over the past.
Our thoughts make us look into the history tab of our platform or the running profit and loss for the day.

On average we experience and process 60,000 thoughts a day. And these thoughts make themselves
known to us and get manifested inside our body as emotions and feelings. Yes, thoughts manifested are emotions, we feel emotions, we feel the manifestations of our thoughts. When you feel anxiety,
stress or boredom it is because of the thoughts you have processed earlier.
The thought process happens ahead of those emotions.

So when you become aware of your emotions that you don't want or like you know that you have been thinking the wrong things. If you remain conscious at all or most of the time you will be in control of how you feel.

So our feelings are our feelings. They are inside of us. But the information that we see on the chart
are coming from outside, from the external environment. They become part of our inner self, the
internal environment but don't come from within.

What we need to is to respond in the manner that is the most objective and accurate. In order to
achieve that we have to find out and decide and document our course of action well in advance. The
actions that we take must have been already planned ahead of time.

Stop judging your template, your trading system or signals. Simply accept the information and take actions accordingly. If you're not sure then say no thank you with gratitude. But keep an eye open.

When the game is over you'll have the chance to go over the days performance and find out how well you did. IF you have passed valid set-ups you can then compare and analyse why did you perceive what you did and why did you take the course of action that you took. Was your perception correct or was it not.

If it was not, was it due the cloud of fear and greed or other emotions or was it based on market generated information?

If it was based on "objective" mental and technical analysis then you have done well but if it was a result of any of the negative emotions then you've made mistakes. It is time to enforce your disciplinary procedures which should have been laid out in your written trading plan.May the Pips be with you!